Woolworths sees modest sales growth
High street retailer “encouraged” by progress
January 15 2003
Woolworths saw total like-for-like sales grow by 1.5 per cent In the six weeks to January 11, with like-for-likes in the main Woolworths chain growing by 0.9 per cent.
There was higher like-for-like sales growth of 6 per cent in the out-of-town Woolworths Big W chain, and 6.2% in the home entertainment MVC chain. Total Group sales for the six week period grew by 5.8 per cent.
The company said that despite a tougher retail environment, Christmas trading has been satisfactory and in line with its plans. Woolworths, which is midway through a three year recovery programme, said it expects a significant improvement in profitability for the year, well in line with market expectations.
In the 23 weeks to January 11, total like-for-like sales growth was 1.2 per cent, with the Woolworths chain growing by 0.5 per cent, Woolworths big W 3.4 per cent and MVC 8.6 per cent. Total group sales grew 4.7 per cent, with the combined high street and Big W businesses up 3.3 per cent and the entertainment businesses up 10.4 per cent.
Woolworths chief executive Trevor Bish-Jones said: “Our priority this year has been to address some immediate operational issues, deliver a solid performance over Christmas and put in place a programme for the longer term growth of the business.
“The initiatives announced in September 2002 for the busy Christmas period were successfully implemented. Over 6,000 extra staff were recruited with a significant improvement in staff retention rates and customer service levels. This was supported by the installation of over 800 additional tills, which were operational by December 14. Christmas stock was flowed into the stores earlier than last year and this, supported by increased delivery frequency and better in-store disciplines, resulted in a marked improvement in availability. New ranges, particularly in home and toys were well received.
“Implementation of the longer term strategy for the Woolworths business is also well underway and a detailed update will be given at the preliminary results announcement.
“The potential for further improvement to the Woolworths business is clear. While there is still a lot to be done, we are encouraged by the progress that has been made to date.”
